Durable Goods Adoption and the Consumer Discount Factor: A Case Study of the Norwegian Book Market

We exploit a change in Norway’s fixed book pricing policies to construct exclusion restrictions with which to identify consumers’ discount factor. We assume that the policy change generated an unanticipated, exogenous shock to consumers’ expectations about future price cuts. Our findings suggest that consumers are much more impatient than would be implied by the real rate of interest, challenging the standard assumed rate of discounting in the extant literature on dynamic demand estimation. The high rate of consumer impatience is consistent with laboratory studies in the behavioral economics and decision-making literatures. This paper was accepted by Matthew Shum, marketing.

Justice and inequality in the household consumption in Russia and China: A comparative analysis

The authors conducted a comparative analysis of the household consumption in Russia and China on the basis of the reputable empirical information sources. The article focuses on the main trends and peculiarities in how households from each country differed in terms of the structure and level of consumption under dramatic transformations associated with market reforms. Inequality in consumption in Russia and China, which can be characterized as high or excessive, largely determines the overall situation with social inequality and significantly influences the development of state social policy in various fields. As for the most differentiating items of expenditure for both countries, those are groceries, durable goods, public utility payments, cultural activities and entertainment. After noting the effect that income has on consumption, which is undeniable, though differs in nature and degree, the authors focus on other factors of this type of inequality, in particular, on the territorial, regional and settlement-specific characteristics of consumption inequality in both countries. The authors argue that in Russia, there is significant regional inequality in consumption, while in China such inequality is more settlement-specific; there are also differences in consumption inequality between urban and rural areas, which contribute to the overall situation with social inequality. In China, urban household expenditures are growing much faster than those of rural households, while in Russia the difference is not that pronounced. That said, the share of spending on groceries in the structure of expenditures is decreasing more rapidly in urban China, and compared to Russia, there is a smaller gap between urban and rural areas. At the same time in China, consumption inequality as a result of age and class differences is a much more acute issue, while in Russia, the differences caused by intensifying economic stratification seem to be a more important factor of inequality.

Biocatalytic Formation of Novel Polyesters with para-Hydroxyphenyl groups in the Backbone - Engineering Cupriavidus necator for production of high-performance materials from CO2 and electricity

Synthetic materials are integral components of consumables and durable goods and indispensable in our modern world. Polyesters are the most versatile bulk- and specialty-polymers, but their production is not sustainable, and their fate at end-of-life of great concern. Bioplastics are highly regarded alternatives but have shortcomings in material properties and commercial competitiveness with conventional synthetic plastics. These constraints have limited the success in global markets. Enabling bio-production of advanced bioplastics with superior properties from waste-derived feedstocks could change this. We have created microbial cell factories that can produce a range of aliphatic and aromatic polyesters. A DphaC1 mutant of Cupriavidus necator H16 was complemented with hydroxyacyl-CoA transferases from either Clostridium propionicum (pct540) or Clostridium difficile (hadA), respectively. These were combined with a mutant PHA synthase (phaC1437) from Pseudomonas sp. MBEL 6 19, which rescued the PHA- phenotype of the knock-out mutant and allowed polymerization of various hydroxy carboxylates, including phloretic acid. This is the first-time, incorporation of an aromatic ring in the backbone of a biological polyester was achieved. Polymers contain para-hydroxyphenyl subunits are structurally analogous to synthetic aromatic polyesters like PET and high-strength polyarylates. In a further advance, the transgenic strain was cultivated in a bio-electrochemical system under autotrophic conditions, enabling synthesis of aromatic bio-polyesters from H2 and O2 generated in situ, while assimilating CO2. Follow-up elementary flux-mode analysis established the feasibility of de novo production of twenty different polyesters from five different carbon- and energy-sources. This comprehensive study opens the door to sustainable bio-production of high-performance thermoplastics and thermosets.

DOES LAND EXPROPRIATION INCREASE HOUSEHOLD CONSUMPTION AND SAVINGS RATE? EVIDENCE FROM RURAL CHINA

This paper estimates how land expropriation affects household consumption and savings rate using a nationally representative household data from China. We argue that land expropriation is likely to be random across households within the same village. We find that land expropriation has positive and statistically significant effects on per capita household consumption and savings rate. The effects on consumption of durable goods and on savings rate, however, weaken and become insignificant over time.

Spending patterns portend permanent economic changes

Services spending shows little sign of recovering, exacerbating the inflationary imbalances in durable goods and energy

Segmenting the Bottom of the Pyramid Consumers: Theoretical Approach

The Bottom of the Pyramid (BOP) market deserves further attention from researchers. The purpose of the paper is to profile the psychographic and behavioral heterogeneity within the BOP market in India employing a theoretical approach. We use constructs of the Theory of planned behavior (TPB) to identify distinct BOP segments. It segments the BOP market in the context of durable goods, non-durable goods, and services. The findings demonstrate the presence of three consumer segments, each of the durable and non-durable goods. In the context of services, the findings show the existence of four segments of BOP consumers. This study offers insights into application of behavioral theories for segmentation, which could help with behavioral change of BOP consumers to use high-quality products and services. Further, it is significant because the BOP market has witnessed a progressive decline in size as a large segment of the BOP market is being transformed into the middle class. Comprehension of the cognitive and behavioral tendencies of each consumer segment would strategically help in retaining the brand loyal BOP customers when they upgrade to the middle class.

A Strategy for Planned Product Aging in View of Sustainable Development Challenges

In this paper, the issue of the deliberate aging of products by manufacturers is discussed. Deliberate aging consists in intentionally planning or designing a product with an artificially limited lifetime in order to force consumers to replace it faster. The resulting rapid acceleration of the cycle of obtaining and utilizing consumer goods has serious consequences in the form of negative externalities. For this reason, the conscious aging of products is now recognized as the cause of unjustified consumption, generating huge economic and social costs and leading to the devastation of the natural environment and excessive exploitation of natural resources. Thus, it is in clear contradiction to the model of sustainable development. The aim of this paper was to identify the purchasing attitudes of buyers in the durable goods market. For its implementation, a pilot questionnaire study, which covered a representative group of 354 respondents, was carried out. The results indicate that the factors that influence the purchase of restitution goods depend on the type of product and the consumer’s income. At the same time, about two thirds of the respondents recognized the problem of the deliberate aging of products. In their opinion, the goods produced in the autarkic economy were more durable and their life cycle was much longer. The results obtained require further empirical verification carried out in comparative studies.